CJC_H2_ECONS_P2_qns

CATHOLIC JUNIOR COLLEGE JC2 PRELIMINARY EXAMINATIONS In preparation for General Certificate of Education Advanced Level Higher 2 ECONOMICS 9732/02 Paper 2: Essay Questions 25 August 2016 0800 - 1015 Additional Materials : Writing Paper 2 hours 15 min READ THESE INSTRUCTIONS FIRST Write your name, class and question number on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Begin each question on a new sheet of paper. Answer three questions in total, of which one must be from Section A, one from Section B and one from either Section A or Section B. At the end of the examination, hand in EACH questions separately. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 3 printed pages and 1 blank page

2 © Catholic Junior College 9732/02/Preliminary/2016 Answer three questions in total. Section A One or two of your three chosen questions must be from this section. 1 (a) Based on economic theory, explain how society deals with scarcity. [10] (b) The free market should always be left alone. Comment. [15] 2 Domestically, rising costs and competitive prices offered by regional rivals are eroding Singapore’s appeal as a medical tourism hub. At the same time, incomes in Asia, where a large portion of the clients come from, has suffered from the slowdown in China’s economy. Source: Perspectives@SMU Using economic analysis, discuss the impact these events are likely to have had on consumers’ expenditure on medical services in domestic and foreign markets. [25] 3 Singapore Airlines , caught between the rapid emergence of airlines from the Gulf countries (for example, Emirates) and low cost Asian rivals, is att empting to revive growth by cutting prices. Source: CNBC (a) Using appropriate examples, explain the various internal economies of scal e enjoyed by an airline company. [10] (b) Given the market structure Singapore Airlines is operating in, discuss if the business strategy used is the best way to survive the threats in the airline industry. [15]

3 © Catholic Junior College 9732/02/Preliminary/2016 Section B One or two of your three chosen questions must be from this section. 4 Assess the importance of external stability in achieving an improvement of standard of living for different economies. [25] 5 (a) Explain what determines the effectiveness of fiscal policy in achieving economic growth in Singapore. [10] (b) Discuss whether conflict in macroeconomic objectives is the most important factor in determining policy decisions in Singapore. [15] 6 To what extent is there a greater need for smaller countries to be globalised? [25]

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